Today, let’s take another look at the Institutional “core holding stocks” held by Institutional Investors again.
Since they control over 50% of the stock market, what they do is relevant to all of us.
Today, we will show two charts one long term, and the other a close up as of 10 AM today.
The first chart show’s the long term picture of the core holdings held by the large Institutional Investors. Note that the peak was made in early 2000, after which the core holdings descended and went into a down trend.
The big question in debate now, is whether the Institutional Index has started a new long term Bull market up trend or not?
The question is raised because the Institutional Index of core holdings has broken above its 12 year resistance line. Now, see the next chart …
This next chart is simply a close up of the above chart as of 10 AM this morning. d
Note that the Institutional Index was still above its long term resistance in spite of yesterday’s market action.
Is there anything special about 2012? There could be … it turns out that, for decades, election years have shown stock market up moves with an average increase of 7.3%. Already, as of March 19th, we say an 8.33% rise, so arguably it was getting ahead of itself.
So, this is still a bullish profile that won’t be undone unless we see our daily Inflowing Liquidity levels move down to Contraction territory. Right now, Inflowing Liquidity dropped again yesterday, but at the same time Inflowing Liquidity was still in our high Expansion Quadrant 1 territory.
Bottom line … While we could see more down movement in the next few days, this battle is not over yet.
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